Abstract
Introduction
Wealth Management in the US is a complete guide to the HNW market in the USA.
The report provides detailed market sizing of the onshore affluent population,
before moving onto examine the characteristics and needs of the US HNW
investor. It concludes by examining the competitive landscape, with a focus on
key strategies for success, which are accompanied by in-depth case
studies.
Features and benefits
- Utilizes Datamonitor' s Global Wealth Model to size, segment and
forecast the number of onshore affluent individuals across 10 asset bands,
2005-2014.
- Utilizes Datamonitor' s Global Wealth Model to size, segment and
forecast the value of onshore liquid assets held by affluents, 2005-2014.
-
Identifies key investor trends, including the rising importance of
technological communications, particularly for the younger wealthy.
- Four
competitor profiles explore how these ' best in class' wealth managers are
demonstrating innovative approaches to key strategies.
Highlights
Millionaires in the US lost $1.2 trillion in the value of their onshore liquid
assets between 2007 and 2009. Poor economic performance has also resulted in a
loss of over 4.5 million US affluent individuals.High net worth investors in
the US are cautious and using a blend of self-directed and advisory services.
Wealth managers are making strong efforts to integrate online offerings into
their total wealth management service.Five key strategies for success in
today' s market are identified and discussed: marketing, brand image and
reputation; improve online functionality; target the retiring generation as
well as ' life events' to maximise opportunities; and work with wealthy
families to retain inter-generational transfers.
Your key questions answered
- How big is my addressable market in the US?
- What are the main business
models operating in the US?
- Who are the key competitors in the US wealth
management space?
- What are the best strategies for wealth managers to be
adopting to meet investor needs?
Table of Contents
Executive Summary
Millionaires in the US lost $1.2 trillion in the value of their onshore
liquid assets between 2007 and 2009
Self-directed investment is strong in the US, but HNWs also want advice from
professionals
The top 15 wealth managers in the US manage over $3 trillion in private
client assets and are adopting a range of strategies to improve their market
position
OVERVIEW
Catalyst
Summary
MARKET OVERVIEW
Economic context
The US' s poor economic fundamentals have resulted in a loss of over 4.5
million US affluent individuals
The value of onshore liquid assets has increased of late and will continue to
grow throughout the forecast period
The onshore affluent population
The high-end housing market has been affected by recession
Millionaires in the US lost $1.2 trillion in the value of their onshore
liquid assets between 2007 and 2009
Growth in wealth in the US will pick up, particularly after 2012
US HNW INVESTOR TRENDS
HNW investors in the US are cautious, using a blend of self-directed and
advisory services
Some wealth managers are making efforts to integrate the self-directed and
advisory model
Case study: Merrill Lynch Wealth Management offers "Total Merrill", a total
service wealth management program
While the self-directed model is strong, US HNWs still want advice from
wealth managers
US HNWs want financial advice from professionals but also rely on the
internet
A tough economy has played an important part in encouraging HNW investors to
seek professional advice
Case study: PNC Wealth Management attracts particular market segments, to
build relationships within its wealth management service
Case study: Citi Private Bank offers niche insight to wealthy people,
including aircraft and sports advisory services
Younger wealthy individuals are independently minded and are more inclined to
undertake their own investments
The younger the HNW individual, the more likely they are to doubt the value
of wealth advisors
Wealth managers need to ensure that they are capturing the product and
service needs of young HNWs
Young HNW investors are embracing new technology and integrating social media
into their lives
Case study: Barclays Wealth is ahead of the game on Twitter
Technological communication channels are becoming increasingly important in
the wealth management business
There are many interactive opportunities for wealth managers
Advisors and web-based functionality are complementary in the wealth
management space
The frequency of contact with professional wealth managers is an issue for
HNWs in the US
THE COMPETITIVE ENVIRONMENT
There are three types of wealth management business models in the US
The top 15 wealth managers in the US manage over $3 trillion in private
client assets
Datamonitor has identified five strategies that will help wealth managers to
succeed
Strategy to succeed in today' s market: marketing brand, image, and
reputation
Wealth managers' marketing efforts need to address issues such as credibility
and trust
Branding is weak within the wealth management business, which is now facing a
more demanding clientele
BNY Mellon has an innovative approach to its brand strategy
Wealth management at BNY Mellon
BNY Mellon hits clients head-on with the truth in a marketing exercise to
improve brand, image, and reputation
Barclays Wealth is another good example of a successful brand identity
Strategy to succeed in today' s market: improve online functionality to cater
to a wider range of clients
BNY Mellon offers "Private Workbench", a dedicated online platform
Strategy to succeed in today' s market: target the retiring generation
There is a renewed need to focus on retirement planning
UBS offers an innovative approach to retirement planning by encouraging
clients to envision their retirement
UBS' s approach makes sense in the current environment
Strategy to succeed in today' s market: target "life events" to maximize
opportunities for the bank
Charles Schwab targets "life events" to segment its customer base
Wealth management at Charles Schwab
Entrepreneurs are time-scarce and as a result have specific wealth management
needs
Strategy to succeed in today' s market: work with wealthy families to retain
inter-generational transfers
Bessemer Trust embraces philanthropy as a customer retention tool
Wealth management at Bessemer Trust
Bessemer highlights its philanthropy services as a key specialism of its
wealth management service
APPENDIX
Definitions
The drivers of growth in the wealthy population
Income growth (combined with inflation, changes in GDP by sector, household
savings rates, and debt levels)
Investment returns (market capitalization, interest rates, and bond
yields)
The following measures are not, in themselves, drivers of wealthy population
growth
Market capitalization
GDP
The following measures are not drivers of wealthy population growth except
under very restricted circumstances
Primary residence value growth
Inheritance
Methodology
Global Wealth Model
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
